A Muslim who possesses the nisab for a complete lunar year is obligated to pay Zakat. If a man in Lagos owns gold worth ₦5,000,000 and the nisab threshold is equivalent to ₦500,000, how much Zakat is he required to pay?

Zakat on gold and monetary wealth is calculated at 2.5% of the total zakatable amount. 2.5% of ₦5,000,000 = (2.5/100) × 5,000,000 = ₦125,000. Option A (₦25,000) represents 0.5%, Option B (₦50,000) represents 1%, and Option C (₦100,000) represents 2%, all of which are incorrect rates for Zakat on wealth.